Defining Ethics in Business - Essay Example

Introduction The concept of ethics in business is one that is debated, specifically because it changes the operation of a business as well as the success or failure of the business. According to Robert Solomon’s article, It’s Good Business, there are specific considerations to make with ethics and business. To survive within the economy and to establish a specific reputation is also the need to create an ethical establishment. The main points that Solomon points out as well as his approach to ethics can all be considered as true. His ability to show how ethics can work in favor of a business while providing examples of how businesses fail when they don’t work within ethics are all seen as practical, real life situations that determine the success or failure of a business. Defining Ethics in Business The first main point that Solomon points out is to define what ethics means within a corporation or small business. He shows that ethics is one that is needed on all levels of management and ownership and which creates a framework of success for individuals. More importantly, there is an establishment of ethics is not based on what it means to keep a job or to be a successful business person, but to instead develop a mindset that is based on how one works within a community. Solomon states that “Executives are most effective and successful when they retain their ‘real life’ view of themselves, their position, and the human world outside as well as inside the corporation. Business ethics, ultimately, is just business in its large human context” (34). This particular statement is essential as it defines what ethics means in business. Rather than thinking of it as following business policies and doing what one is told in terms of management, is the need to understand the humanistic element as well as how actions will affect others. This particular point is one that is the foundation of ethics and which shows that the definition of ethics needs to be considered outside of the assumptions made by those who analyze different perspectives. An example of this definition can be seen in almost any business. A personal example is seen from a friend who works within a computer organization. The mindset in which this individual has is to please the boss and to make sure that the work is efficient and effective. The managerial staff as well as the main CEO is interested in how this will create profit for the business. Similar to Solomon’s point, this doesn’t show a term of ethical behaviors. This individual may find a problem with the product developed; however, the management may decide to make the sale anyway. Technically, the individual has done their job and has made the sale, which backs up company policy and ethics. However, in real life situations, one has to also consider how the consumer will respond as well as how this will affect the reputation of the business when giving a faulty piece of equipment. According to Solomon, this is a bad ethical strategy and is based on good business, as opposed to strong ethics. The second point that shows true through Solomon’s article is the three C’s of business ethics. Compliance, contributions and consequences are the three associations that Solomon points out (36), which is combined with an awareness of what is occurring with the business. When looking at compliance, Solomon doesn’t point out that it is compliance with the business, but instead with laws of the land. More importantly, the contributions should be focused on a real life focus, qualities and activities that directly affect others in a positive or negative manner. An example of the other side of this is through companies such as Enron. When the scandal occurred with cooking the books and taking money by the CEOs, it was immediately considered unethical. According to the company, this was supported and was providing substantial profit to individuals and to the business. It was the compliance with the laws as well as the lack of contributions to the community that were judged and led to the downfall of the company. Being responsible not only for the company, but also for individual and community based morals then becomes more important than the compliance with the business. The definition of Enron fits with Solomon’s belief in business scum, in which the business environment fits with breaking ethical rules. However, in real world situations, this eventually leads to the downfall of a corporation. Making sure that ethics are a part of both the upper and lower management then becomes essential. The final points that Solomon shows is based on how ethics can help to sustain a business. Solomon makes the point that a business thrives from the monetary value and profit that comes into a business. However, he then states that the value and quality of the business thrives not because of monetary means, but instead because of ethical considerations that can be applied to everyday life. He states “In general, we can say this: A virtue sustains and improves a practice. A virtue in business is an ethical trait that makes business in general possible, and this necessarily includes such virtues as respect for contracts as well as concern for product quality” (39). Solomon follows with several basic rules for ethics that can be applied to those that are in business. The main ideology that Solomon points out is one that comes to individual decisions and behaviors in regard to a company. Whether one owns a business or is working as an employee is the need to understand how each of the actions they take will lead to either the success or the failure of a business. A real life example of this can be seen as a consumer that is buying a specific product. The virtue is one that includes contracts, quality as well as the ability to show a level of respect and worth toward the services offered. When going to a store, there is always a consumer focus on what the store offers first. However, if going to a store that doesn’t provide strong quality with the products, then most likely, one will not return. If someone asks for a service and the return is of poor quality or is incomplete, then the response is that the service was provided as an injustice because of the poor return. The businesses have to keep in mind the consumer first, not only for price value, but also for quality and by showing a level of respect and initiative to the consumer. By doing this, there is the ability to gain loyalty and to build a trusting relationship with others that are in the business. Whether it is a small business or corporation, the return of ethics is one that is based on the sincerity and value that a company can provide. Conclusion The concept of ethics is one that is often regarded as a part of company policy and ideologies in business. However, for a company to be truly successful is the need to place individual and team value within the organization. The concept of ethics, according to Solomon, is one that is based on providing higher quality, respectful return of products and different initiatives that show ethics at a personal level. The points that Solomon makes prove true in any business setting and are able to provide an understanding of how businesses should function. The ability to move beyond profit and into a complete business approach that incorporates individual morality and value, as well as quality given to consumers, is then able to help a business become valuable within a given community. Bibliography Solomon, Robert. It’s Good Business: The Nature of Morality: An Introduction to Ethics. Boston: Oxford University Press, 1977. Read More